Trading Price Action Trends

AL BROOKS is a technical analysis contributor for Futures magazine and an independent day trader. His approach to reading price charts was developed over two decades in which he changed careers from ophthalmology to trading. Brooks graduated from The University of Chicago Pritzker School of Medicine in 1978 and received a BS in mathematics with honors from Trinity College in 1974. His website, brookspriceaction.com, outlines his trading approach and views as well as hosts a subscription-based daily trading chat room in which Brooks talks with other traders about the market.

• Acknowledgments xiList of Terms Used in This Book xiiiIntroduction 1Part I Price Action 35Chapter 1 The Spectrum of Price Action: Extreme Trends to Extreme Trading Ranges 55Chapter 2 Trend Bars, Doji Bars, and Climaxes 59Chapter 3 Breakouts, Trading Ranges, Tests, and Reversals 77Chapter 4 Bar Basics: Signal Bars, Entry Bars, Setups, and Candle Patterns 83Chapter 5 Signal Bars: Reversal Bars 89Chapter 6 Signal Bars: Other Types 101Chapter 7 Outside Bars 155Chapter 8 The Importance of the Close of the Bar 169Chapter 9 Exchange-Traded Funds and Inverse Charts 173Chapter 10 Second Entries 177Chapter 11 Late and Missed Entries 181Chapter 12 Pattern Evolution 185Part II Trend Lines and Channels 191Chapter 13 Trend Lines 195Chapter 14 Trend Channel Lines 209Chapter 15 Channels 219Chapter 16 Micro Channels 249Chapter 17 Horizontal Lines: Swing Points and Other Key Price Levels 269Part III Trends 275Chapter 18 Example of How to Trade aTrend 289Chapter 19 Signs of Strength in a Trend 307Chapter 20 Two Legs 319Part IV Common Trend Patterns 323Chapter 21 Spike and Channel Trend 325Chapter 22 Trending Trading Range Days 359Chapter 23 Trend from the Open and Small Pullback Trends 383Chapter 24 Reversal Day 415Chapter 25 Trend Resumption Day 423Chapter 26 Stairs: Broad Channel Trend 431About the Author 437About the Website 439Index 441

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